Square, a mobile payments company that also operates the wildly popular Cash App, announced on Thursday its quarterly profits had fallen by 23% due to Bitcoin’s volatility. The earnings were forecasted lower in February as well. Will opening it to teenagers help?
The “bitcoin this week” is a cryptocurrency that has been on the rise in recent weeks. Square’s Cash App Bitcoin profits have fallen by 23% and it looks like opening it to teenagers could help.
In its Q3 financial report, Jack Dorsey’s payments startup Square Inc. reported that Bitcoin produced a 23 percent decline in quarterly revenues for mobile payments app Cash App.
Bitcoin earnings and revenue, on the other hand, are both growing year over year.
The “relative stability of the price of Bitcoin, which decreased trading activity compared to recent quarters,” Square says, is to blame for the reduction in quarter-over-quarter Bitcoin revenue and gross profit.
Users in the United States and the United Kingdom may use the Cash App to purchase Bitcoin and send money and BTC to one another. It presently ranks second in financial app installations on the US Google Play Store, behind top-ranked crypto.com, according to AppBrain.
After falling from a prior high of roughly $63,000 to about $31,000 in Q2, Bitcoin witnessed considerably less volatility in Q3, with prices ranging from approximately $30,000 to $50,000.
According to the earnings report, Bitcoin sales reached $1.82 billion in the third quarter of 2021, with gross profit of $42 million, reflecting 11 percent and 29 percent year-over-year growth. Some of the year-over-year gain is attributed to the rise in the price of Bitcoin, according to the research.
Cash App is currently targeting the young demographic. On November 4th, Jack Dorsey tweeted that anybody 13 and older may now use the Cash App for peer-to-peer transactions, although they can’t deposit checks or purchase Bitcoin at the moment. This puts Cash App up against Apple Cash’s family feature. Adding Bitcoin capability for adolescents would set it apart from other payment options, such as Apple Cash and Venmo, and potentially boost earnings.
Everyone aged 13 and above may now use the Cash App https://t.co/TeK8uPQ9Tt
November 3, 2021 — jack (@jack)
Despite lower Bitcoin income, Cash App generated $2.39 billion in revenue and $512 million in gross profit in the third quarter of 2021, representing 16 percent and 33 percent increases, respectively.
Square, led by Jack Dorsey, intends to create an open-source Bitcoin mining infrastructure.
Cash App made waves earlier this week when it announced that it has partnered with famous NFL quarterback Aaron Rodgers to receive a percentage of his income in Bitcoin.
In after-hours trading, the shares of Square Inc. has dropped 3.87 percent to $237.88.
The “crypto fud news” is that Square’s Cash App Bitcoin profits have fallen 23% since the addition of a feature allowing users to buy and sell Bitcoin.
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